[The Following Information Applies to the Questions Displayed Below $\quad$ $\quad$

[The following information applies to the questions displayed below.]
On August 1, Year 1, Jackson Company issued a one-year $80,000 face value interest-bearing note with a stated interest rate of 9% to Galaxy Bank. Jackson accrues interest expense on December 31, Year 1, its calendar year-end.
-What is the amount of interest expense and the cash outflow for interest during the year ending December 31,Year 1?
Interest Expense $\quad$$\quad$$\quad$$\quad$$\quad$ Cash Outflow

A) $\$ 7,200 \quad \$ 7,200$
B) $\$ 7,200\quad\quad\quad\quad\quad\$0$
C) $\$ 3,000$$\quad$$\quad$$\quad$$\quad \$0$
D) $\$ 3,000 \quad\quad\quad\quad\quad \$ 3,000$